Posted on 28 Jul 2023
Stocks of the five major finished steel products held by Chinese traders tracked by Mysteel increased for a fifth consecutive week over July 21-27, rising by 1.2% on week, as against the 1% lift in the prior period, Mysteel's latest survey shows. The further accumulation indicated that actual demand remains sluggish as the rains and hot weather impacting steel consumption still linger, sources said.
The inventories of rebar, wire rod, medium plate, hot-rolled coil and cold-rolled coil at traders' warehouses in the 132 cities nationwide monitored by Mysteel mounted by another 228,700 tonnes on week to reach 18.8 million tonnes as of July 27.
Among the five, stocks of rebar gained the most, rising by 154,300 tonnes on week to 8.5 million tonnes. Second to rebar was medium plate, whose stocks mounted by 48,500 tonnes on week to 2.2 million tonnes, Mysteel's data showed.
"Although the Politburo meeting held on Monday pledged to adjust and optimize property policies in a timely manner, the effect of such positive signals on the near-term recovery in domestic steel demand seems limited," said a market insider, considering that the adverse weather is impeding outdoor construction activity.
"Work on building sites has basically been suspended due to the impending arrival of Typhoon Doksuri, and the procurement of steel products for construction halted as well," remarked a steel trader in Xiamen in Southeast China's Fujian province. "Our delivery volume has been hit hard," he complained.
Typhoon Doksuri is nearing the Chinese mainland and is forecast to make landfall in coastal areas of Fujian and Guangdong provinces on Friday morning, Mysteel Global learned from the national observatory. The typhoon is shaping up to be one of the most powerful to hit China in recent years and prompted the observatory to renew its 'red' typhoon alert warning on Thursday.
Meanwhile, steel inventories among traders in Mysteel's former smaller sample across just 35 cities also grew for the fifth week, climbing by 1.2% or 134,500 tonnes on week to 11.8 million tonnes as of July 27.
Source:Mysteel Global
